North Media sells newspaper activities to Jysk Fynske Medier
20 April 2020
Announcement no. 16-2020
North Media A/S has signed a deal to sell North Media Aviser A/S to Jysk Fynske Medier. Closing is expected on 30 April 2020 with takeover as per 1 May 2020.
North Media Aviser is the publisher of Helsingør Dagblad, Lokalavisen Nordsjælland, eight local newspapers in the Greater Copenhagen area, and the news site kbhLIV.dk as well as other media.
With the divestment, the North Media Group will cease to publish newspapers.
“Newspaper publishing has been a core activity at North Media A/S since 1978, but the newspaper publishing market is facing challenges, and we believe that market consolidation is a good solution. We are therefore pleased to sell our newspapers to Jysk Fynske Medier, who is a strong industrial player with the size and capacity to ensure the continued operation of the newspapers” said Kåre Wigh, Group Executive Director & CFO.
The takeover includes all employees of Hovedstadens Mediehus, Helsingør Dagblad, and Lokalavisen Nordsjælland.
In 2019, North Media Aviser generated revenue of DKK 93.8 million and an operating loss (EBIT) before special items of DKK 5.6 million.
At the beginning of 2020, North Media Aviser was expected to generate revenue of DKK 87-91 million and an operating loss before special items in the DKK 8-12 million range for 2020. However, in connection with the Corona pandemic the guidance was suspended as per company announcement no. 12-2020 of 18 March 2020. Taken separately, the divestment of North Media Aviser will improve the 2020 profit (EBIT) of North Media A/S by some DKK 15 million relative to the guidance announced at the beginning of the year.
The agreement with Jysk Fynske Medier is final and unconditional, and the transfer of North Media Aviser A/S to Jysk Fynske Medier is expected to be carried out as a share transaction with closing at 30 April 2020 and takeover as per 1 May 2020.
Changes to the Executive Board of North Media
As a result of the divestment, Lasse Wulff Hansen will step down as CEO of North Media Aviser as of 30 April 2020 but continues his position in North Media as Group Executive in charge of business development at North Media.
Following these changes, the Executive Board of North Media will consist of Kåre Stausø Wigh, Group Executive Director & CFO, Lasse Ingemann Brodt, CEO of FK Distribution, Henrik Løvig Jensen, CEO of North Media Online, Jannik Bray Christensen, CEO of BEKEY, and Lasse Wulff Hansen, Group Executive in charge of business development.
The North Media Group’s strategy remains unchanged
Following the divestment, the activities of the North Media Group will consist of three business areas:
- FK Distribution distributes advertising material to consumer letter boxes and mail boxes. FK Distribution is Denmark’s leading door-to-door distributor of retail information.
- North Media Online runs portals for rental housing, jobs and loans via the platforms BoligPortal, Ofir and 50%-owned LeadSupply. BoligPortal.dk is Denmark’s leading rental housing portal.
- BEKEY provides distribution companies, home carers and others with access to, e.g., locked stairways. BEKEY is Denmark’s leading provider of cloud-based key solutions and access control systems.
North Media remains strategically focused on activities where we can act as a liaison between businesses and consumers and thereby deliver customers to our customers. All the Group’s business areas invest in solutions optimisation, digitalisation and innovation on a continuing basis.
The interim report for Q1 2020 to be released on 7 May 2020 is expected to include the Group’s guidance for full-year 2020.
For further information, please contact:
Kåre Wigh, Group Executive Director & CFO, tel.
This document is an unofficial translation of the Danish original. In the event of any inconsistencies, the Danish version shall apply.
